iPhone 5C to replace iPhone 5, will cost between $400-$500

As we all are now aware that Apple will launch one extra budget phone this fall along with next generation iPhone. The fall is almost confirmed to be happen on 10th September. Mingchi Kuo,from KGI, has reported that the iPhone 5C price will be around $400-$500 and after its launch, we will not see any iPhone 5 as budget iPhone 5C will surely replace the present iPhone.

iPhone 5C to replace iPhone 5, while iPhone 4S goes on. We’ve learned that the iPhone 5 line will be terminated from 4Q13, while the iPhone 4S line will carry on. From this, we infer that iPhone 5C is launched to replace iPhone 5. In other words, the 5C model will be positioned as midrange. We forecast its retail price to be US$400-500. We expect iPhone 5S, iPhone 5C, iPhone 4S and iPhone 4 will fall into the price ranges of US$600-700, US$400-500, US$300-400 and US$200-300, respectively, in the new product cycle. Since iPhone 4’s specs may not be adequate to run on iOS7, we think this line may be terminated.

Further 9to5mac reported Mingchi Kui latest findings as follows:

Components and EMS of the new iPhones will be ready for ramp-up in August and September, respectively

Hon Hai begins manufacturing the TDD-LTE-supported iPhone 5C earlier than expected in August

TDD-LTE supporting models may see respective penetration of 25% and 35% in iPhone 5S and iPhone 5C shipments

iPhone 5 will reach end-of-life at the end of 3Q13, while shipments of iPhone 4S will continue until the end of 2013. From this situation we can infer that iPhone 5C is actually intended to replace iPhone 5, rather than iPhone 4S